The proposed amendment to the Seed Law seeks to further strengthen the protection of the legitimate rights and interests of holders of plant variety rights.

Release Date:

2021-12-21

Establishing a legal framework for the seed industry that incentivizes and safeguards original innovation is key to turning the tide in this sector. On the 20th, a draft amendment to the Seed Law was submitted to the Standing Committee of the National People’s Congress for its second deliberation, with plans to further strengthen protection of the legitimate rights and interests of holders of plant variety rights.

In August this year, the draft amendment to the Seed Law was submitted for its first review at a meeting of the Standing Committee of the National People’s Congress and was made public to solicit comments from the general public. Some members of the Standing Committee suggested further strengthening the protection of the legitimate rights and interests of owners of plant variety rights.

To this end, the draft explicitly stipulates that the holder of a plant variety right is entitled to collect royalties—such as through a percentage of sales—in accordance with the terms of the licensing agreement, thereby securing long-term returns from the commercial promotion and marketing of the seed. It further provides that the holder of a plant variety right may license others to exploit the protected variety and collect licensing fees as agreed in the contract; such fees may be levied either as a fixed sum or as a percentage of the proceeds generated from the variety’s commercialization.

In addition, the draft further strengthens penalties for counterfeit and substandard seeds, increasing the fines imposed for the production and sale of such seeds.

Source: Xinhua News Agency

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